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Method of accounting for inventory in a retail store

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1 Which method of accounting, periodic or perpetual, for inventory would you choose for a retail store that you managed. Make your choice and explain why you made it. Narratives about your prior or current experience with inventory are welcome.

2 With the adoption of international accounting standards, the LIFO inventory cost flow assumption will most likely be eliminated. Do you believe that LIFO should be eliminated? Make your choice (yes or no) and explain why you made it. Narratives about your prior or current experience with inventory are welcome.

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The 467 word cited solution explains the concepts for inventory in detail including a good discussion about the death of LIFO.

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1. Which method of accounting, periodic or perpetual, for inventory would you choose for a retail store that you managed. Make your choice and explain why you made it. Narratives about your prior or current experience with inventory are welcome.

For inventory, the perpetual system is superior in many ways, but not always practical for a small business. To have a good system using the perpetual method, requires the purchase and installation of POS software and registers capable of running the software. POS means 'point of sale' and it accomplishes several objectives at the same time.

With POS working and with trained employees as to how to use it, each time a sale is rung up, ...

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